What drives up rents

Readers dispute a recent Crain's editorial.

What drives up rents

The argument that a lack of housing stock is what drives higher rents is only partially true. The type of housing stock being developed does as well. The big fear is, of course, gentrification and dislocation of existing renters. While gentrification can benefit homeowners, renters are left out in the cold.

That's where the type of new housing stock comes into play. If it includes enough affordable housing to offset the gentrification, everyone wins. Developers naturally want to wring as much profit as possible out of their projects, and they make a better return building luxury housing than worker housing.

That seems to be another key issue driving up rents, in addition to supply and demand.

Mark

When neighborhood hardware stores are replaced by artisanal cheese stores, or the local Chinese take-out morphs into a $20 hamburger place, the evolution of these businesses reflects the newer, wealthier residents who appreciate such places and can afford them on a regular basis. Look at rents in "up and coming" areas like Bed-Stuy or Crown Heights or Greenpoint. More and more units are being built, and the rents are going up as the areas gentrify.

However, we take issue with his skepticism of our findings and his preference for New York Times polling showing fewer people planning to leave. The Times surveyed all adults—but younger New Yorkers are far more likely to stay than pre-retirees not tied here by jobs and careers.

Mr. David noted AARP's lack of "historical data." But you have to start somewhere, and even many of the first boomers haven't retired yet. The hard numbers show 22%, 30% and over 40% of retired state government, city government and SEIU 1199 employees, respectively, actually live elsewhere.

The problem is real, and as Mr. David rightly put it, "the debate should be over why they are leaving." Housing and utility costs, plus "livability issues" such as street-crossing signals timed too fast and cars not yielding to pedestrians, are among the major reasons our survey found. That's not an exhaustive list, but city leaders should pay attention.